Stephen Elop to make $33 million on his way out of Nokia
Former Nokia CEO and Microsoft Executive Vice President Stephen Elop will receive a compensation package for leaving the company, according to a new report. After Microsoft announced plans last year to acquire Nokia’s handset business for $7.2 billion, Elop was criticized by shareholders who were concerned that he would make $26 million in severance pay in the transaction.
Microsoft said it would pay 70% of that sum and shareholders argued that Nokia’s 30% contribution wasn’t in line with the company’s performance during Elop’s tenure as CEO. Nokia shareholders may be even more agitated because his actual compensation is $33 million not $26 million. The difference is from the increase in Nokia’s stock value since the acquisition was announced. The 70-30 split is remaining in place.
Elop will receive $5.5 million in cash and the balance is in stock. Even though the companies agreed to a $7.2 billion deal, Microsoft ended up paying $7.5 billion because of the increase in Nokia’s value at the time of the closing.